GBP / USD. 11th of September. Results of the day. The European Union may concede in some paragraphs of the Brexit agreement

4-hour timeframe

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Amplitude of the last 5 days (high-low): 65p - 196p - 66p - 120p - 155p.

The average amplitude for the last 5 days: 120p (105p).

The British pound sterling on Tuesday, September 11, virtually repeated the movement of the pair EUR / USD. But at the same time, an upward trend is maintained in the pound, the formation of which raises some questions (we already wrote about this). The fact is that the optimism of traders towards the pound (by the way, very restrained optimism) is based on expectations of a deal between the EU and Britain. And this, in turn, is based on the speech of Michel Barnier, in which he said that 80% of the agreement with Theresa May was achieved. Nevertheless, Barnier himself also noted that there are still issues that could not be negotiated. Meanwhile, in the Conservative Party of Britain, there is a split. This has long been rumored, as the manner of reigning Theresa May, mostly because of Brexit, is not satisfied with everything. Her plan for an agreement with the EU is heavily criticized in the Parliament, and according to rumors, about 80 party representatives are ready to vote against this plan. Undoubtedly, May hopes that the Parliament will support her initiative, but in case of a failure, there will again be talk about Theresa May's possible retirement. If we assume that this will happen, then Boris Johnson, who is an ardent opponent of the "May plan" for secession from the EU, will also apply for her post. Accordingly, the negotiations (which by that time may already be completed) can take place even harder. Of course, all this is just talk. Nevertheless, the key issue on the Northern Irish border remains open. Perhaps, the parties still have to make concessions in order not to heat up the situation even more, and disperse "amicably". In any case, time is less and less.

Trading recommendations:

The currency pair GBP / USD worked out the first target of 1.3034 and began a downward correction. Thus, the price may fall to the critical line, but we do not recommend that you work out a correction now. Also, there is a high probability of flat or frequent corrections and kickbacks.

The buy-positions are recommended to be opened in the case of resumption of the uptrend, which can be determined by turning the MACD indicator upward or by rebounding the price from the critical line. The first target is 1.3034. The second one is 1.3113.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and histogram with white bars in the indicator window.

The material has been provided by InstaForex Company - www.instaforex.com